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2. Consider a seller who faces two groups of consumers. The rst group is summarized by the demand function Q1(p) = 100 p. The second
2. Consider a seller who faces two groups of consumers. The rst group is summarized by the demand function Q1(p) = 100 p. The second group is summarized by Q20?) = 50 P. The cost to the seller is C(Q) = ZOQ. (a) Find the optimal prices if different prices can be charged to each group (3rd degree price discrimination). (b) Find the optimal price if the same price must be charged to both groups. (c) Which groups benet from price discrimination
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